JST473 Forensic Accounting, Asset Tracing and Recovery

Task:

The auditors have raised these discrepancies with the Chief Executive Officer (CEO) of ABC Company and suspect Lincoln has been recording fraudulent time-sheets for the affected casual employees and cashing in their cheque into his own personal account. The CEO has contacted the Australian Federal Police to assist in further investigating the discrepancies.

The responding Officer in Charge (OIC) seeks assistance from the Fraud Squad and the job has been allocated to you. As the nominated Forensic Accountant (sworn officer) attached to the Fraud Squad you have been instructed by your Superintendent to prepare a preliminary report for the OIC to address the following:

1.Explain the significance of forensic accounting specific to this case and how a Forensic Accountant can contribute to the effective investigation of these discrepancies;

2.Describe in detail how the business records have been manipulated to allow for the fraud to occur;

3.Provide a comprehensive analysis that (1) identifies the weaknesses in the payroll cycle, (2) details sound internal controls to be implemented to address the identified weaknesses and (3) explains how these ramifications will mitigate identified risks.

Rationale

This assessment task will work towards assessing the following learning outcome/s:

be able to demonstrate their knowledge of the role of a forensic accountant in an investigation, as both an investigator and expert witness, by designing a financial crime investigation plan.

be able to make recommendations to improve business practices to prevent financial crime.